Custom «Response Paper» Essay Paper Sample
The world has experienced a recession like no other in recent times that has brought about a lot of different reactions the world over and even led to panic among business people, governments and ordinary citizens around the world. We have all witnessed the increase in the prices of vital commodities like food that have even led to the shortfall of these products in the markets. The United States of America is one of the most developed countries In the entire world. It is obviously the leader in trends in the world and as such what affects its markets either positively or negatively will in turn affect the rest of the world. Markets the world over look up to the US market for guidance and it has thus been worrying to realize that the US markets were in dire need of assistance. If the markets in the world super power were in need of help from the government, then what was the situation on the ground in reference to the other countries? What about the emerging and the developing countries?
All the global markets in the world are related in one way or another. The developed markets set the trends and pace for the smaller markets to follow. If the bigger markets experience any sort of upward boost by any kind, they gain and their gains can be clearly felt in the smaller markets. Thus in such a situation, all are winners. What has been happening in the markets lately has been worrying not only to the American markets but to all the markets the world over. The poor performance of stocks in stock markets in Europe caused sudden and unexpected financial crises in the whole of Europe. The global markets were going down at such a high speed that nothing could have been done then to stop the downward spiral. This immediately led to hiking of commodity prices throughout Europe since all the currency used, especially the Euro, across that continent had weakened against the Dollar and the British Pound, which are the main foreign exchange earners for that continent.
Hurry up! Limited time offer
Use discount code
The anguish in Europe spread to the other parts of the world like cancer very fast thanks to the fact that Europe is a major market for African products while the Asian market relies heavily on the European market due to the heavy business trading between the two continents. Lowering of mortgage rates in America was an obvious way for the government to try and rescue people from having to lose their homes. America was already affected by the rise in food and other necessary commodities and the budgets of most Americans were already tightly stretched. The American Federal Government was thus seeking ways by which it could raise some money to assist in keeping America afloat and to save the American stocks. As a result, banks, both local and foreign, were sued so that the Federal Government could recover money totaling to $200 billion. This is the money that the government wanted to act as cushion to assist it meet its targets and ensure that all the sectors and sections of Government went on running smoothly.
Greece is one of the countries in Europe that was greatly affected by the financial crises. It was important for the whole of Europe to take interest in Greece because it is one of the countries that uses the Euro as currency. Considering that the Euro is used in multiple countries across Europe, any one country that causes the currency to reduce in value would have an effect on all the other countries sharing the currency. It was thus of paramount importance that European countries assisted Greece to get back to its feet as soon as possible to avert a near crises from spreading further throughout Europe. This could have had a negative effect on millions of people and brought the whole continent to its knees.
Benefit from Our Service: Save 25% Along with the first order offer - 15% discount, you save extra 10% since we provide 300 words/page instead of 275 words/page
All continents rely on each other especially for trade and as such even America was forced to intervene in the financial crisis in Europe to seek for ways to assist Europe to get out of it with minimal losses. This is because the two are major trade partners and America would have lost a lot of money in doing trade with a continent that had none. It would have been a major risk for America to ignore the goings on in Europe. In response, America has gone ahead to offer loans to European countries that were in financial crises to assist them to break even and to give them a soft landing as they try to get back on their feet.
Printing more money would have enabled America pay off some of its debts without a doubt. This seems like a good idea on the face value. On closer inspection though, it can be noted that this action would have led to the loss and eminent lowering of the value of the American dollar. This in turn would have led to a crisis of another kind since America would have had less debt abroad but in turn would not sustain itself as a country. Thus was the decision not to print more currency. Bonds perform better over long periods of time and thus was the reason the Federal Government saw it fit to invest by buying bonds rather than print more cash.
AT&T and T-Mobile are the market leaders when it comes to mobile telephony market in America. Their merger would have led to the formation of one of the biggest mobile telephone companies in the world. Nevertheless, their merger was not well timed and came about the same time the financial crisis did. If the merger had not been halted for some time, there would have been an unprecedented loss of jobs for very many people. This is because the merged company would have ended up losing money and as such would have opted to lay off staff to remain afloat. Without the financial crisis affecting the markets at that time, the merger would have been God sent since it would have led to job creations but this was to have been reversed by the financial crises.
Top 10 writers
from the incredible opportunity
at a very reasonable price
Oil is a very essential commodity the world over. The deal between Exxon-Mobil and Rosneft is likely to offer a boost into the economy since it would bring in foreign exchange into America while at the same time it would bring in the Dollars into Russia thus boosting both countries economically. It is therefore very important to note that no country is totally independent as we all rely on each other for one reason or the other.